A few days ago, Dongfeng Xiaokang Motor Co., Ltd. held the 10th anniversary of its founding and the foundation stone laying ceremony of its engine project in Shiyan. It is reported that the newly laid engine project is located in the Xiaokang Avenue in the Shiyan Economic Development Zone. It covers an area of ​​more than 500 acres and is planned to invest 70 million yuan. After it is completed and put into production, it can produce 300,000 engines per year and increase the output value by more than 2 billion yuan.
Zhu Fushou, general manager of Dongfeng Motor Company pointed out that Dongfeng Xiaokang's business spans two major areas of passenger cars and commercial vehicles and is an important part of Dongfeng's own brand development. After the Dongfeng Xiaokang Shiyan engine project is completed and put into production, the complete vehicle supporting system will be more perfect.
At present, Dongfeng Xiaokang has two production bases in Chongqing and Shiyan in Hubei, with an annual production capacity of 500,000 vehicles. The medium-term business plan shows that in 2016, its production capacity will reach 800,000 vehicles/year. After the engine production capacity is filled, it is the only way for Dongfeng Xiaokang to seek for vehicle capacity expansion.
However, after the micro-vehicle market experienced a near double-digit negative growth in 2011, sales volume continued to decline in 2012. According to statistics from the China Association of Automobile Manufacturers, micro-vehicle sales amounted to 1,843,300 units in the first 10 months of 2012, a year-on-year decrease of 0.20%, making the expansion plan uncertain.
It is reported that Dongfeng Xiaokang will use the new Ryoma mini-vehicle project approved and put into production by Dongfeng Xiaokang after the reorganization of Fufeng by Dongfeng to achieve southeast production layout and production capacity utilization. In response, the person in charge of Dongfeng Xiaokang stated that the future production will still be conducted in Chongqing and the Shiyan two bases. At present, there is no discussion on the borrowing of new Ryoma capacity.
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